Former TXU Plays for Time To Pursue Bankruptcy Deal

The troubled Texas power company at the center of a record private-equity buyout intends to make debt payments in May that could let it stave off a bankruptcy filing for as long as another 18 months, according to people close to the situation. The former TXU Corp., now called Energy Future Holdings Corp., plans to pay roughly $270 million in interest due on its bonds May 1, these people said. Enlarge Image The Wall Street Journal The Dallas-based company, which employs more than 9,000 people, plans to make the payments partly because its advisers are in talks with creditors on a so-called prearranged bankruptcy plan and need more time to negotiate a debt-restructuring deal, the people said. In a prearranged bankruptcy, a company strikes a deal with its creditors on a reorganization plan before seeking Chapter 11 protection, hoping to streamline court proceedings. read more at:http://online.wsj.com/article/SB10001424127887324345804578422631933287270.html